General News of Fri, 11 May 201866
Akufo-Addo fixing Mahama's mess - Otchere-Darko
Gabby Asare Otchere-Darko has expressed satisfaction with the way his uncle, President Nana Addo Dankwa Akufo-Addo is managing the country.
According to him, Nana Akufo-Addo is not only fixing the mess left behind by the erstwhile Mahama administration but also growing the economy to create jobs and prosperity.
Mr Otchere-Darko’s comment comes after government successfully sold $2 billion worth of dual-tranche Eurobonds with 10- and 30-year maturities on Thursday, 10 May 2018.
In a Facebook post, the founder of Danquah Institute, said: “The Akufo-Addo government is doing two things at the same time: fixing the mess left behind by the I-Shall-Return-Mahama government, and, at the same time, growing the economy to create jobs and prosperity.
“Take yesterday for instance, Ken Ofori-Atta and his team raised $2bn on a cheaper coupon with longer maturity on the bond market after an amazingly successful roadshow. Much of it is to pay NDC debts, mainly the $750m they borrowed less than 3 months before the 2016 elections. The liability management for the tender is about $700m notional amount. Which means that plus the premium, we will pay about $819m to retire the 2022 bonds and still be left with another $750m new money for the budget.
“This makes a total of $1.569 billion, leaving an extra $431m, which Ghanaians should expect Government to take and put in the sinking fund and buy-back bonds if and when the prices are attractive. Let me stress, this is the lowest coupon ever for a ten-year bond. Again, this is the first time we have issued a 30-yr bond and at rates lower than what the NDC issued, a five-year bond in 2016 (9.25%)!”